IDEAS home Printed from https://ideas.repec.org/a/bla/ijhplm/v34y2019i4pe1688-e1710.html
   My bibliography  Save this article

An unintended consequence of provider payment reform: The case of capitation grants in the National Health Insurance reform of Indonesia

Author

Listed:
  • Si Ying Tan
  • Jiwei Qian

Abstract

One of the most important components of the ambitious 2014 National Health Insurance reform in Indonesia is the implementation of prospective payment system known as capitation grants, paid monthly to the primary health providers based on the enrolment rate. This has ushered in additional financial resources for the health managers in resource allocations, especially in the hiring of manpower. Drawing data from the Indonesia Family Life Survey (1993‐2015), this paper uses difference‐in‐differences method to evaluate the effects of the payment method reform on the allocation of human resources for health among the primary health providers. To our surprise, there was no statistically significant change in the total number of full‐time staff among the capitated facilities after the reform. However, capitation grants caused an increase in the number of full‐time equivalent and part‐time equivalent contract staff, but a significant decline in the number of full‐time permanent staff among the urban capitated facilities. It is likely that more contract health workers were hired at the expense of full‐time permanent staff among the capitated facilities in the urban regions. This unintended consequence shed light on the need to develop nuanced and contextual understanding of payment reforms in developing countries.

Suggested Citation

  • Si Ying Tan & Jiwei Qian, 2019. "An unintended consequence of provider payment reform: The case of capitation grants in the National Health Insurance reform of Indonesia," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(4), pages 1688-1710, October.
    • Handle: RePEc:bla:ijhplm:v:34:y:2019:i:4:p:e1688-e1710
    DOI: 10.1002/hpm.2883
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hpm.2883
    Download Restriction: no
    File URL: https://libkey.io/10.1002/hpm.2883?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jegers, Marc & Kesteloot, Katrien & De Graeve, Diana & Gilles, Willem, 2002. "A typology for provider payment systems in health care," Health Policy, Elsevier, vol. 60(3), pages 255-273, June.
    2. Mills, Anne & Bennett, Sara & Siriwanarangsun, Porntep & Tangcharoensathien, Viroj, 2000. "The response of providers to capitation payment: a case-study from Thailand," Health Policy, Elsevier, vol. 51(3), pages 163-180, April.
    3. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    4. Johar, Meliyanni, 2010. "The effect of a public health card program on the supply of health care," Social Science & Medicine, Elsevier, vol. 70(10), pages 1527-1535, May.
    5. Claudia Rokx & John Giles & Elan Satriawan & Puti Marzoeki & Pandu Harimurti & Elif Yavuz, 2010. "New Insights into the Provision of Health Services in Indonesia : A Health Workforce Study," World Bank Publications - Books, The World Bank Group, number 2434, December.
    6. Kristiansen, Stein & Santoso, Purwo, 2006. "Surviving decentralisation?: Impacts of regional autonomy on health service provision in Indonesia," Health Policy, Elsevier, vol. 77(3), pages 247-259, August.
    7. Sekar Ayu Paramita & Chiho Yamazaki & Elsa Pudji Setiawati & Hiroshi Koyama, 2018. "Distribution trends of Indonesia's health care resources in the decentralization era," International Journal of Health Planning and Management, Wiley Blackwell, vol. 33(2), pages 586-596, April.
    8. Ha Thi Hong Nguyen & Sarah Bales & Adam Wagstaff & Huyen Dao, 2017. "Getting Incentives Right? The Impact of Hospital Capitation Payment in Vietnam," Health Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 263-272, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Bruce Matchar & Wei Xuan Lai & Ashish Kumar & John Pastor Ansah & Yeuk Fan Ng, 2023. "A Causal View of the Role and Potential Limitations of Capitation in Promoting Whole Health System Performance," IJERPH, MDPI, vol. 20(5), pages 1-13, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Piotr Korneta & Magdalena Kludacz-Alessandri & Renata Walczak, 2021. "The Impact of COVID-19 on the Performance of Primary Health Care Service Providers in a Capitation Payment System: A Case Study from Poland," IJERPH, MDPI, vol. 18(4), pages 1-19, February.
    2. Waters, Hugh R. & Hussey, Peter, 2004. "Pricing health services for purchasers--a review of methods and experiences," Health Policy, Elsevier, vol. 70(2), pages 175-184, November.
    3. Moreno-Serra, Rodrigo & Wagstaff, Adam, 2010. "System-wide impacts of hospital payment reforms: Evidence from Central and Eastern Europe and Central Asia," Journal of Health Economics, Elsevier, vol. 29(4), pages 585-602, July.
    4. Francis-Xavier Andoh-Adjei & Eric Nsiah-Boateng & Felix Ankomah Asante & Koos van der Velden & Ernst Spaan, 2019. "Provider preference for payment method under a national health insurance scheme: A survey of health insurance-credentialed health care providers in Ghana," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-13, August.
    5. Finnegan, Amy, 2020. "Effects of a sister's death in childbirth on reproductive behaviors: Difference-in-difference analyses using sisterhood mortality data from Indonesia," Social Science & Medicine, Elsevier, vol. 250(C).
    6. Andrew Hodge & Sonja Firth & Tiara Marthias & Eliana Jimenez-Soto, 2014. "Location Matters: Trends in Inequalities in Child Mortality in Indonesia. Evidence from Repeated Cross-Sectional Surveys," PLOS ONE, Public Library of Science, vol. 9(7), pages 1-10, July.
    7. Wright, Austin L. & Sonin, Konstantin & Driscoll, Jesse & Wilson, Jarnickae, 2020. "Poverty and economic dislocation reduce compliance with COVID-19 shelter-in-place protocols," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 544-554.
    8. Iacovone, Leonardo & Ferro, Esteban & Pereira-López, Mariana & Zavacka, Veronika, 2019. "Banking crises and exports: Lessons from the past," Journal of Development Economics, Elsevier, vol. 138(C), pages 192-204.
    9. Marco Colagrossi & Claudio Deiana & Andrea Geraci & Ludovica Giua, 2022. "Hang up on stereotypes: Domestic violence and an anti‐abuse helpline campaign," Contemporary Economic Policy, Western Economic Association International, vol. 40(4), pages 585-611, October.
    10. Donnelly, Grant E. & Simester, Duncan I. & Norton, Michael I., 2021. "The short and long-run impact of empowering customers in corporate social responsibility initiatives," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 616-637.
    11. Abel Brodeur, 2012. "Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans," Working Papers halshs-00664269, HAL.
    12. Leopoldo Fergusson & Carlos Molina, 2020. "Facebook Causes Protests," HiCN Working Papers 323, Households in Conflict Network.
    13. Villas-Boas, Sofia B, 2020. "Reduced Form Evidence on Belief Updating Under Asymmetric Information," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt08c456vk, Department of Agricultural & Resource Economics, UC Berkeley.
    14. Dautović, Ernest & Gambacorta, Leonardo & Reghezza, Alessio, 2023. "Supervisory policy stimulus: evidence from the euro area dividend recommendation," Working Paper Series 2796, European Central Bank.
    15. Nan Yang & Yong Long Lim, 2018. "Temporary Incentives Change Daily Routines: Evidence from a Field Experiment on Singapore’s Subways," Management Science, INFORMS, vol. 64(7), pages 3365-3379, July.
    16. Katie R. Genadek & Wendy A. Stock & Christiana Stoddard, 2007. "No-Fault Divorce Laws and the Labor Supply of Women with and without Children," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    17. Luis Aguiar & Jörg Claussen & Christian Peukert, 2018. "Catch Me If You Can: Effectiveness and Consequences of Online Copyright Enforcement," Information Systems Research, INFORMS, vol. 29(3), pages 656-678, September.
    18. Gautier, Pieter & van Vuuren, Aico & Siegmann, Arjen, 2007. "The Effect of the Theo van Gogh Murder on House Prices in Amsterdam," CEPR Discussion Papers 6175, C.E.P.R. Discussion Papers.
    19. Beestermöller, Matthias, 2017. "Striking Evidence? Demand Persistence for Inter-City Buses from German Railway Strikes," Discussion Papers in Economics 31768, University of Munich, Department of Economics.
    20. Nicolaj N. Mühlbach, 2020. "Tree-based Synthetic Control Methods: Consequences of moving the US Embassy," CREATES Research Papers 2020-04, Department of Economics and Business Economics, Aarhus University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ijhplm:v:34:y:2019:i:4:p:e1688-e1710. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0749-6753 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.